Seeking to improve understanding, communication, and cooperation between Mexico and the United States by promoting original research, encouraging public discussion, and proposing policy options for enhancing the bilateral relationship.

Three Years After Housing Implosion, Mexico Risks Another Mess

Three years after Mexico’s housing crisis wiped out $4 billion in stocks and bonds, the industry risks suffering another downturn.

That’s because President Enrique Pena Nieto has close to doubled subsidies for low-income housing in the past two years. Moody’s Investors Service analyst Francisco Vazquez said that has encouraged developers to go on a construction spree even as a sluggish economy saps demand for new homes. Much of the new building is also taking place in the outskirts of major cities where few services are available, he said.